Problem 3: Fire Fly Corp has the following comparative balance sheets for 2023 and 2024 and an income statement for 2024. Prepare a cash flow statement using the indirect method. Balance Sheet As of December 3 1 st Assets 2024 2023 Cash $1,550 $4,000 Account Receivable 860 400 Inventory 1,800 1,500 Investment trading securities 970 970 Fair Value Adjustment 70 Property Plant & Equipment 12,000 10,800 Accumulated Depre - PPE -4,650 -4,400 Goodwill $230 $600 Total Assets $12,830 $13,870 Liabilities Accounts Payable $1,200 $1,550 Accrued Wages 800 220 vertible Bonds Payable 0 300 Bonds Payable 2,540 4,100 Discount on Bonds Payable -10 -12 Total Liabilities $4,530 $6,158 Stockholders' Equity Common Stock 4,300 3,100 Paid-in capital - Common Stock 300 100 Retained Earnings 3,700 4,512 Total Liability & Equity $12,830 $13,870Income Statement During the Year Ended December 31 Dividend Revenue 200 _ Unrealized Holding Gain/Loss - Income _ Total Net Sales _ $45,320 - N Cost of Goods Sold Operating Expenses Loss due to Impairment of Asset Loss on sale of Machinery 154 Total Expenses _ 30,856 Income Before Income Tax _ 14,464 Income Tax Expense _ (3,037) Net Income (Loss) _ $11,427 hdditional Information from the 2024 accounting records: a. Fire Fly owns a 10% of Frog Inc. that increased in market value during 2024. Frog Inc. gave out $2,000 worth of dividends to all of its owners during 2024. b. 100% of Convertible bonds were exchanged for 100 shares of $1 par common stock. c. Machinery (part of the Plant Property and Equipment value) with an original cost of $1,000 was sold. Deprecation was calculated using the straight-line method and exactly 60% of its useful life was used up. d. Depreciation is included as part of Operating Expense. e. $1,300 worth of equipment was purchased by issuing a bond. All other Property, Plant, and Equipment purchases were made in cash. Required: Prepare the statement of cash flow under the indirect method. Your finished product should have all the information disclosed on a formal statement, including a list of noncash transactions. (19 points) PRESENT VALUE OF $1 PRESENT VALUE OF ANNUITY DUE (annuity in advance -- beginning of period payments) RATE PER PERIOD 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% 11.00% 12.00% Periods RATE PER PERIOD 4.00% 5.00% 6.00% 7.006 8.00% 9.00% 10.00% 11.00% 12.00% Periods 0.96154 0.95238 0.94340 0.93458 0.92593 0.91743 0.90909 0.90090 0.89286 1.00000 1,00000 1.00000 1.00000 1.00000 1.00000 1,00000 1.00000 1.00000 0.92456 0.90703 0.89000 0.87344 0.85734 0.84168 0.82645 0.81 162 0.79719 2 1.96154 1.95238 1.94340 1.93458 1.92593 1.91743 1,90909 1.90090 1.89286 2 0.88900 0.86384 0.83962 0.81630 0.79383 0.77218 0.75131 0.73119 0.71178 W 2.88609 2.85941 2.83339 2.80802 2.78326 2.75911 2.73554 2.71252 2.69005 3 0.85480 0.82270 0.79209 0.76290 0.73503 0.70843 0.68301 0.65873 0.63552 3.77509 3.72325 3.67301 3.62432 3.57710 3.53129 3.48685 3.44371 3.40183 4 0.82193 0.78353 0.74726 0.71299 0.68058 0.64993 0.62092 0.59345 0.56743 4.62990 4.54595 4.46511 4.38721 4.31213 4.23972 4.16987 4.10245 4.03735 0.79031 0.74622 0.70496 0.66634 0.63017 0.59627 0.56447 0.53464 0.50663 5.45182 5.32948 5.21236 5.10020 4.99271 4.88965 4.79079 4.69590 4.60478 0.75992 0.71068 0.66506 0.62275 0.58349 0.54703 0.51316 0.48166 0.45235 6.24214 6.07569 5.91732 5.76654 5.62288 5.48592 5.35526 5.23054 5.11141 0.73069 0.67684 0.62741 0.58201 0.54027 0.50187 0.46651 0.43393 0.40388 00 7.00205 6.78637 6.58238 6.38929 6.20637 6.03295 5.86842 5.71220 5.56376 0.70259 0.64461 0.59190 0.54393 0.50025 0.46043 0.42410 0.39092 0.36061 7.73274 7.46321 7.20979 6.97130 6.74664 6.53482 6.33493 6.14612 5.96764 0.67556 0.61391 0.55839 0.50835 0.46319 0.42241 0.38554 0.35218 0.32197 10 8.43533 8.10782 7.80169 751523 7.24689 6.99525 6.75902 6.53705 6.32825 10 0.64958 0.58468 0.52679 0.47509 0.42888 0.38753 0.35049 0.31728 0.28748 11 9.11090 8.72173 8.36009 8.02358 7.71008 3741766 7.14457 6.88923 6.65022 11 0.62460 0.55684 0.49697 0.44401 0.39711 0.35553 0.31863 0.28584 0.25668 12 9.76048 9.30641 8.88687 8.49867 8.13896 7.80519 7.49506 7.20652 6.93770 12 0.60057 0.53032 0.46884 0.41496 0.36770 0.32618 0.28966 0.25751 0.22917 13 10.38507 9.86325 9.38384 8.94269 8.53608 8.16073 7.81369 7.49236 7.19437 13 0.57748 0.50507 0.44230 0.38782 0.34046 0.29925 0.26333 0.23199 0.20462 14 10.98565 10.39357 9.85268 9.35765 8.90378 8.48690 8.10336 7.74987 742355 14 0.55526 0.48102 0.41727 0.36245 0.31524 0.27454 0.23939 0.20900 0.18270 15 11.56312 10.89864 10.29498 9.74547 9.24424 8.78615 8.36669 7.98187 7.62817 15 0.53391 0.45811 0.39365 0.33873 0.29189 0.25187 0.21763 0.18829 0.16312 16 12.11839 11.37966 10.71225 10.10791 9.55948 9.06069 8.60608 8.19087 7.81086 16 0.51337 0.43630 0.37136 0.31657 0.27027 0.23107 0.19784 0.16963 0.14564 17 12.65230 11.83777 11.10590 10.44665 9.85137 9.31256 8.82371 8.37916 7.97399 17 0.49363 0.41552 0.35034 0.29586 0.25025 0.21 199 0.17986 0.15282 0.13004 18 13.16567 12 27407 11.47726 10.76322 10.12164 9.54363 9.02155 8.54879 8.11963 18